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Go.com reports 3Q loss
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August 2, 2000: 4:51 p.m. ET
Disney Internet operator beats estimates, plans name change
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NEW YORK (CNNfn) - Go.com, Walt Disney's Internet content arm, on Wednesday reported a narrower-than-expected third quarter loss, boosted by revenue growth at its Web operations, and said it would change its name to Walt Disney Internet Group.
North Hollywood, Calif.-based Go.com, home of Web sites such as ABCNEWS.com, Disney.com, and ESPN.com, reported an operating loss before amortization costs of $83.2 million, or 34 cents a share, compared with a pro forma loss of $48.1 million, or 20 cents a share in the year-ago quarter.
Analysts surveyed by First Call had anticipated a loss of 45 cents a share, excluding goodwill.
 Revenue rose to $86 million, up from pro forma revenue of $78 million a year ago.
The pro forma data adjust 1999 figures to assume that Disney's acquisition of Web portal Infoseek was completed at the
start of 1999.
The company said its Internet unit's revenue increased 39 percent to $69.5 million, while operating losses increased to $76.8 million from $42.3 million for the year-ago quarter, excluding non-cash amortization of intangible assets.
"We have made great strides in operating efficiencies in the third quarter and remain committed to building a leading Internet media company," said Chairman Steve Bornstein.
Go.com attributed the increased losses to higher costs and expenses from its Website-related investments, new product initiatives such as Movies.com, and functional changes to its existing Web sites Disney.com, DisneyTravel.com, and the GO.com Web site.
The company said the new name, Walt Disney Internet Group, would more accurately reflect the overall focus of its business. The group's common stock will continue to trade on the New York Stock Exchange but, effective August 7, under the new name, and with a new ticker symbol, DIG.
The name change comes about two months after Disney settled a trademark suit with Internet search service Goto.com, under which Disney and Go.com agreed to pay $21.5 million.
Pasadena, Calif.-based Goto.com sued Disney last year, claiming Go.com's yellow square and green circle traffic light logo infringed upon Goto.com's trademark yellow background and green circle.
The information was released after the closing bell on Wednesday. Shares of Go.com slipped 1/16 to 10-5/8 during the regular session. 
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